RE:RE:RE:RE:RE:GCM & Aris Gold Combine! Wow!"In general, cutting dividends (regardless of rationale) is never considered a positive by the markets."
gcm has never been general or normal.
the news here says div will be eliminated
https://thedeepdive.ca/gcm-mining-to-acquire-aris-gold-at-no-premium-to-market/ and yet the market loves it even on a down gold day.
which would you rather have, 30c capital gain in a single day like today, or 18c div after waiting 1 year?
"Again, sorry, not buying this!!"
nobody is asking you to buy this.
Heywood_Silvers wrote: My preference would've been to just stop buying back shares and keep the dividend. GCM would save more by going cold turkey on the buybacks instead of cutting the dividend.
In general, cutting dividends (regardless of rationale) is never considered a positive by the markets.
We're going to withhold your dollar today in hopes that we can give you two dollars 5 years from now. And suddenly we realize the importance of what we were taught in finance class: "A bird in hand is worth two in the bush".
Sorry, don't buy it, the divvy was quite low to begin with, no harm whatsoever in keeping it. If GCM has to pinch pennies to this degree, we have to question whether they have concerns about solvency. Wouldn't the $10mm annual G&A savings pay for all of the extra dividens to the new Aris shareholders anyways? Again, sorry, not buying this!!